Indio targets cash stream from Coachella and Stagecoach festivals

New fees for short-term rentals to be in place for Coachella, Stagecoach events

10:39 PM, Mar. 7, 2012 |
Written by Xochitl Peña The Desert Sun

INDIO — Homeowners looking to make a quick buck by renting a room or their home for an upcoming concert may have to fork over $100 first in order to do so legally.

The Indio City Council on Wednesday unanimously approved a $40 short-term rental processing fee that will have to be paid on top of a $60 business license tax.

The new processing fee is in addition to an existing 10 percent transient occupancy tax the owners of short-term rentals have to submit to the city on a quarterly basis.

The new fee will be in effect in time for the Coachella Valley Music and Arts Festival concert that runs two weekends this year, April 13-15 and April 20-22, and Stagecoach country music festival, April 27-29.

The popular annual events attract hundreds of thousands of people from throughout the world who rent homes in Indio and neighboring communities while in town.

The city is expected to handle short-term rental issues such as noise complaints from neighbors and the city should be compensated, Mayor Glenn Miller said.

Some of those short-term rental owners are not happy with the recent changes.

Alex Napier thinks the new fee and requirement for a business license is unnecessary and just another way for the city to benefit from the festivals.

“I'm concerned this is not a fair proposal. We've rented rooms in our home since 2009 and we haven't once required additional city services,” she said “People are grateful to have a place to stay. It helps pay the mortgage.”

A short-term rental law approved last month and the new tax approved Wednesday are intended to mainly target people who rent entire homes or cram numerous people into one bedroom. Not the quiet, occasional renter of a bedroom like Napier, Miller said
“We understand, but we have to look at the overall quality of life of all residents,” he said.

And exceptions can't be made, he added.

“Where do you start and stop?” Miller said.

Resident Victor Simmons said he is OK with paying the fees. What he is not OK with is being treated like a hotel and having to pay the 10 percent TOT to the city on a quarterly basis.

“I get you have to pay that tax. But I'm renting out a futon in my daughter's bedroom and I have to pay the city. That is counterproductive,” he said.

To get people to register their properties and obtain the appropriate licenses, the city will waive the $75 business licensing processing fee for six months.

That's why the fee right now for short-term rental owners is $100 — the $40 short-term rental processing fee and a $60 business license tax.
If owners wait until after Sept. 7, the $100 fee rises $75 to include the business licensing processing fee.

After the initial registration, owners will then have to pay $8 to renew the business license. The $40 short-term rental processing fee would have to be renewed each year.

Other valley cities such as Palm Springs, Palm Desert and Rancho Mirage already regulate short-term rentals and require such fees.

Re: Indio targets cash stream from Coachella and Stagecoach festivals

Like it's not bad enough you guys live in Indio. Now you get bent over by City Counsel if you have guests over during a festival....
This is the same City Counsel board that gets 100's of free wristbands from GV for them and their family members. I'm sure none of those wristbands are being sold for mega personal profit. Oh well, let's just see how well this is enforced.

Re: Indio targets cash stream from Coachella and Stagecoach festivals

I view this as the city of Indio trying to impose some order on the residents of Indio who try to exploit festival goers. Look at how many people are on here renting out their yards and spare rooms and houses; they're not doing this because they're nice people or want to party with you. Most cities regulate rental properties, and temporary rental properties can be even more of an issue. Now you've got 2 weekends of Coachella, a weekend of Stagecoach, plus the other festivals. So the people profiting from renting out their daughter's futon have to pay a little to the city just like other business owners. Seems fair.

Re: Indio targets cash stream from Coachella and Stagecoach festivals

How would they enforce this though? Can't people just say that the Coachella guests are relatives or really close friends paying a visit? Will law enforcement knock on every door to check if they have guests that are compensating them for a place to stay?

Re: Indio targets cash stream from Coachella and Stagecoach festivals

Originally Posted by nyarlathotoats

Okay. A little fucked up, cause it seems that indio will do whatever it can to profit from goldenvoice's events.

what else does indio have? they have NOTHING. Goldenvoice is probably the biggest free money grab that comes year round. imagine if they wanted to move to another city ? indio would protest and try to lobby them i would bet 10000%

when pink floyd started doing the wall and they played a show in a small part in germany they got a big dinner/event because just from them putting up the set and all the money that needs to be spent on production they became the 10th biggest economy/business in the area

Re: Indio targets cash stream from Coachella and Stagecoach festivals

The city is doing what it has to do but the rental owners are bitching because they can't just throw a post up on the board and get cash for using their place they actually have to get a permit and put some effort in to make their money. This sucks but doesn't this also mean that the only people getting owned by this are the renter? I'd be real surprised if the owners didn't just pass along the cost to the people renting.

Re: Indio targets cash stream from Coachella and Stagecoach festivals

Originally Posted by Stickjohn

I view this as the city of Indio trying to impose some order on the residents of Indio who try to exploit festival goers. Look at how many people are on here renting out their yards and spare rooms and houses; they're not doing this because they're nice people or want to party with you. Most cities regulate rental properties, and temporary rental properties can be even more of an issue. Now you've got 2 weekends of Coachella, a weekend of Stagecoach, plus the other festivals. So the people profiting from renting out their daughter's futon have to pay a little to the city just like other business owners. Seems fair.

Re: Indio targets cash stream from Coachella and Stagecoach festivals

Originally Posted by nyarlathotoats

Okay. A little fucked up, cause it seems that indio will do whatever it can to profit from goldenvoice's events.

Just a little fucked up? I'm sorry, but I think that's a lot fucked up, and I live here! I remember the first few years when our neighbors bitched about the noise and the traffic... GV took care of the issues and provided camping on site, alleviating some of those concerns. At the same time, Indio was allowing their hotels, along with all the other valley establishments, to jack their room rates up x3 for the weekend. And as Coachella kept growing, even with camping and rooms to choose from, more accommodations seemed necessary, and who jumped in to offer that space? The very same residents who started out bitching about the noise and traffic! Sure, they're making a little money... for the weekends involved... not the rest of the year in this God forsaken piece of shit town! And I think they're doing the festival and the city a favor by doing what the city should have done a long time ago if they wanted more money from the fest...like maybe building their own hotel or place for concert goers, without the indecent rates per room. These homeowners are taking a risk themselves, by renting out their private homes, but it's actually helping the fest during the last few growth spurts. Indio should perhaps work at making their share of the provisions more appealing before screwing over the hand that helped you when you needed it... Just sayin'...

"Who is this doing this synthetic type of Alpha Beta psychedelic funkin'?"CHEMICAL BROTHERS

Re: Indio targets cash stream from Coachella and Stagecoach festivals

Originally Posted by stacheRides

The city is doing what it has to do but the rental owners are bitching because they can't just throw a post up on the board and get cash for using their place they actually have to get a permit and put some effort in to make their money. This sucks but doesn't this also mean that the only people getting owned by this are the renter? I'd be real surprised if the owners didn't just pass along the cost to the people renting.

Makes you wonder what the city would do if those same rental owners were still bitching about everything and not offering their private homes to festival goers... It's 3 fucking weekends, not 52 weekends... hardly worthy of a business title if you ask me.

And, if Indio insists upon collecting this from those owners, no doubt it will be added to the renters costs... Now I wonder if the city will be ready to provide reimbursements to those owners if said renters were to fuck their homes up? I doubt it.

Dear Indio,
Way to be the fucking asshole of Coachella Valley...
Sincerely,
Someone who wouldn't live in this shithole if it weren't for the fest

"Who is this doing this synthetic type of Alpha Beta psychedelic funkin'?"CHEMICAL BROTHERS

Re: Indio targets cash stream from Coachella and Stagecoach festivals

There is no way to enforce this. Anyone staying on your property are "friends". Fuck them, dont comply, there is nothing they can do about it.

All this is more airbedandbreakfast.com backlash. Now that the internet is making smalscale shortterm rentals possible which benifits the consumer, the huge monopoly of hotels and thier lobiests are angry small time renters are cutting into their profits. Once again, fuck them, try to enforce this bullshit.

"How long will this last, this delicious feeling of being alive, of having penetrated the veil which hides beauty and the wonders of celestial vistas? It doesn't matter, as there can be nothing but gratitude for even a glimpse of what exists for those who can become open to it."